2012-12

RESOLUTION IN OPPOSITION TO THE STATE OF OHIO’S PROPOSED ELIMINATION OF THE OHIO ESTATE TAX WITHOUT ALTERNATIVE FUNDING SOLUTIONS

WHEREAS, The State of Ohio calls for the elimination of the State of Ohio estate tax on January 1, 2013; and

WHEREAS, The City of Marion receives more than 4% of its annual income from the Ohio Estate Tax; and

WHEREAS, The State of Ohio is concurrently making drastic cuts to local government funds, which, in conjunction with the loss of the Estate Tax can reduce revenue to the City of Marion by more than 25%, a percentage that vastly exceeds the shortfall being experienced by the State of Ohio; and

WHEREAS, Our community is already struggling to recover from the worst economic downturn since the Great Depression; and

WHEREAS, Even prior to these cuts, the City of Marion operates with one of the lower general fund budgets, per capita, in central Ohio; and

WHEREAS, State of Ohio policy changes that result in a loss of income of this magnitude forces the City of Marion to severely cut back on essential city services and/or raise taxes, and are therefore no different than the State of Ohio instituting a tax increase at the local level; and

WHEREAS, State lawmakers are in the process of instituting these extraordinary cuts without providing localities with any meaningful tools to deal with the shortfalls short of cutting services or instituting a tax increase;

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MARION, OHIO:

Section 1. This Council hereby resolves against the elimination of the Ohio Estate Tax for the year 2013.

Section 2. This council strongly urges State of Ohio lawmakers to adopt one or more of the following actions:

• Maintain the Ohio Estate Tax as it is currently;
• Adjust the Ohio Estate Tax threshold so as to be less likely to impact smaller estates while still providing benefit to communities who rely in part on this revenue source;
• Provide local municipalities who benefit from the Estate Tax, and who, like Marion, also have smaller commercial property bases and therefore a lower capacity to fund their budgets via payroll taxes, with alternative tools and/or revenue equalization measures to compensate for the loss of this revenue source.

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Approved: Dave Edwards
President of Council

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Mayor Scott Schertzer


Attest;

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Clerk of Council